I beg to differ here, you can run either bare metal OS or 2 x OSE VM's, the text below is from the document from Microsoft
http://download.microsoft.com/downl...vervirtualization_licensemobility_vlbrief.pdf
I am sure the same applies for 2016 but the document has still mentioned 2012 R2
For each license for Windows Server 2012 R2 Standard that you assign to a server you may run, at any one time, two instances of the server software in up to two virtual OSEs on the server. If all two instances are running in virtual OSEs, you can also run an instance in the physical OSE solely to run hardware virtualization software, provide hardware virtualization services, or run software to manage and service OSEs on the licensed server.
I would suggest that you read my reply more carefully please.
Where exactly am I wrong in my explanations ?
I was referring to a FREE Core Hyper-V setup that you suggested to use in the previous post.
the FREE Hyper-V instance has no licences except for it self. the document you referring to clearly states licencing rules for Essential / Standard / DataCenter not the FREE Core setup.
the Hyper-V Core Free server caries no VOSs licenses at all
you can run it only as a hypervisor on a hardware with no other roles applied.
each instance of Guest OS (a VM) needs it's own licence.
the Hyper-V Essentials Licence gives you permission to run an instance baremetal + 1 VM
the Standard adds second VM
and Datacenter can run as many as your hardware can support. (that is as many as you can load on a single physical machine running a copy of Hyper-V server with Datacenter licence applied. )
any other licences except Datacenter, will not let you activate the VM OS automatically.
they will ask for a valid license code to be applied to VM.
there is a way around it , but legally if MS comes knocking on your door you will be liable.